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IN THE HIGH COURT OF ORISSA AT CUTTACK
SASHIKANTA MISHRA
Shiv Pharmaceuticals – Appellant
Versus
Raptakos Brett & Company Ltd. – Respondent
| Table of Content |
|---|
| 1. introduction to the case and factual background. (Para 1) |
| 2. arguments for and against the grant of interim compensation. (Para 3 , 4) |
| 3. court's observations on statutory provision and exercise of discretion. (Para 5 , 6 , 7 , 8) |
| 4. final conclusion and directive to remand. (Para 9) |
JUDGMENT :
SASHIKANTA MISHRA, J.
The petitioner is facing trial in 1CC Case No. 81 of 2020 in the Court of learned S.D.J.M. (Sadar), Cuttack instituted on the basis of a complaint filed by the opposite party-complainant under Section 138 of the NI Act. The said case was instituted as a cheque for Rs.11,81,773/- issued by the petitioner-accused in favour of complainant- opposite party towards cost of some products was dishonored by the bank. By order dated 01.06.2022, learned S.D.J.M. directed the petitioner to pay interim compensation of Rs.2,36,355/-, amounting to 20% of the total cheque amount. The petitioner carried the matter in revision before the court of Sessions being Criminal Revision No. 151 of 2022. Learned Sessions Judge, by order dated 09.09.2022 dismissed the revision. The said order is impugned in the present application filed under Section 482 of Cr.P.C.
2. Heard Mr. B. Pasa
A court's discretion in determining interim compensation must be justified with cogent reasons, and failure to do so renders the order unsustainable.
Interim compensation under Section 143-A of the NI Act is discretionary, requiring consideration of both parties' merits and the opportunity for a defense, which was not provided in this case.
The discretion to grant interim compensation under Section 143-A of the NI Act must be supported by reasons and should be based on well-recognized principles.
Interim compensation under Section 143-A of the Negotiable Instruments Act must be justified with reasons, and the accused's plea must be recorded before such compensation is awarded.
Whenever a discretionary power is to be exercised by Court, same has to be exercised on well-recognized principles supported by reasons.
Interim compensation under Section 143A of the NI Act can be granted before trial; the presumption of validity remains even if not all amounts are covered by the cheque.
The court affirmed that under Section 143A of the NI Act, the power to award interim compensation is discretionary, requiring evaluation of the merits of the case and the accused's defence.
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